Auplata (Alternext - FR0010397760 - ALAUP), the largest exchange-listed French gold producer, announces the signing (finalized February 4, 2017) of an agreement with Reunion Gold Corporation (TSX-V: RGD), a Canadian exploration company listed on the TSX Venture Exchange, covering the Dorlin mining permit (Permis d'Exploitation - PEX), held by SMYD, a wholly-owned subsidiary of Auplata, in French Guiana.
The Dorlin mining permit is situated in the central west region of French Guiana, 56 km east of Maripasoula and 190 km southwest of Cayenne. An application to renew the 84 km² exploration permit has been filed and is pending.
Since 2004, Reunion Gold has held numerous mining permits in the Guiana Shield region of South America. David Fennell, Chairman of the Board of Directors of Reunion Gold, and founder of Golden Star Resources, was instrumental in the discovery of the Omai mine in Guyana and the Gross Rosebel mine in Suriname. Dundee Corp., a 25% shareholder in Reunion Gold, was formed by Ned Goodman, considered to be one of Canada's most important investment leaders. He has become an iconic figure in this country's investment history with a career spanning more than five decades.
The agreement between Auplata and Reunion Gold grants the latter a five-year OPTION to acquire 75% of the Dorlin mining permit, with Auplata keeping the remaining 25%.
To exercise this option, Reunion Gold will have to carry out and submit a feasibility study within a period of four-and-a-half years of signing this agreement. Furthermore, to retain its option, Reunion Gold is committed to spend USD 3 million on exploration at the site over the three years following the signing of the agreement.
If the option is exercised, Auplata will have the choice of retaining its interest in the future mining-permit joint-venture, or exchanging it for a mining operations royalty.
The agreement between Auplata and Reunion Gold is subject to various mandatory prerequisites, including approval by French administrative authorities.
This agreement will contribute to the development of the Dorlin Geological Research Center, while enabling Auplata to enhance its understanding of these fields (previously worked by Guyanor), and valorize this permit.
Jean-François Fourt, Chairman and CEO of Auplata, says:
“Dorlin is a historic gold region in French Guiana, and a major geological asset for Auplata. This agreement is the outcome of many negotiations with major players in the mining exploration field. We chose Reunion Gold for their recognized competencies, the long experience of their staff on the Dorlin project, the quality of their shareholding, and the expertise of their Board of Directors.
Reunion Gold is our partner of choice for developing the Dorlin project now that the site has been secured, for setting up our Geological Research Center, and for the preliminary studies that we have carried out to harness the assets of this site which has taken Auplata's full attention to date."
Based in French Guiana, Auplata is the largest French, stock-market listed gold producer. The Company has more than 700 sq km of mining permits and titles in French Guyana. Auplata operates an innovative industrial and FINANCIAL strategy, aimed at developing and exploiting Guianese gold resources with the strong involvement of local players. The Company's objective is to offer sustainable exploitation for the Guianese mining industry.
Since June 2015, Auplata is a shareholder in the Côte d'Ivoire mining company OMCI, which owns two mining projects in Côte d'Ivoire.
Auplata's share capital consists of 53,782,311 shares listed on the Alternext market in Paris (Euronext). ISIN: FR0010397760 – ALAUP ; ICB: 1777 – Gold Mining.
For more information about Auplata go to www.auplata.fr.
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